ECON-GB 2110
Health & Medical Care Business
Midterms (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following is a key principle of value-based
healthcare?
- A) Maximizing the volume of services provided
- B) Reducing patient outcomes
- C) Improving patient outcomes relative to costs
- D) Increasing administrative overhead
- ANS: C) Improving patient outcomes relative to costs
- Rationale: Value-based healthcare focuses on delivering
better health outcomes at lower costs.
2. In the context of healthcare economics, what does the term
"moral hazard" refer to?
- A) The risk of patients receiving unnecessary care
- B) The risk of healthcare providers facing financial losses
- C) The risk of patients avoiding necessary care
- D) The risk of healthcare providers overcharging for services
- ANS: A) The risk of patients receiving unnecessary care
- Rationale: Moral hazard occurs when patients overuse
healthcare services because they do not bear the full cost.
3. Which financial statement is most relevant for assessing the
financial health of a healthcare organization?
©2024/2025
, - A) Income Statement
- B) Balance Sheet
- C) Cash Flow Statement
- D) Statement of Retained Earnings
- ANS: B) Balance Sheet
- Rationale: The balance sheet provides a snapshot of the
organization's financial position, including assets, liabilities, and
equity.
Fill-in-the-Blank Questions
4. The ___________ is a measure of the efficiency and
effectiveness of healthcare delivery, focusing on patient outcomes
and costs.
- ANS: Value-Based Care
- Rationale: Value-based care aims to improve the quality of
care while controlling costs.
5. ___________ is the process of evaluating the potential
profitability and impact of healthcare investments or projects.
- ANS: Health Economics
- Rationale: Health economics involves analyzing the costs
and benefits of healthcare interventions and investments.
©2024/2025
Health & Medical Care Business
Midterms (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following is a key principle of value-based
healthcare?
- A) Maximizing the volume of services provided
- B) Reducing patient outcomes
- C) Improving patient outcomes relative to costs
- D) Increasing administrative overhead
- ANS: C) Improving patient outcomes relative to costs
- Rationale: Value-based healthcare focuses on delivering
better health outcomes at lower costs.
2. In the context of healthcare economics, what does the term
"moral hazard" refer to?
- A) The risk of patients receiving unnecessary care
- B) The risk of healthcare providers facing financial losses
- C) The risk of patients avoiding necessary care
- D) The risk of healthcare providers overcharging for services
- ANS: A) The risk of patients receiving unnecessary care
- Rationale: Moral hazard occurs when patients overuse
healthcare services because they do not bear the full cost.
3. Which financial statement is most relevant for assessing the
financial health of a healthcare organization?
©2024/2025
, - A) Income Statement
- B) Balance Sheet
- C) Cash Flow Statement
- D) Statement of Retained Earnings
- ANS: B) Balance Sheet
- Rationale: The balance sheet provides a snapshot of the
organization's financial position, including assets, liabilities, and
equity.
Fill-in-the-Blank Questions
4. The ___________ is a measure of the efficiency and
effectiveness of healthcare delivery, focusing on patient outcomes
and costs.
- ANS: Value-Based Care
- Rationale: Value-based care aims to improve the quality of
care while controlling costs.
5. ___________ is the process of evaluating the potential
profitability and impact of healthcare investments or projects.
- ANS: Health Economics
- Rationale: Health economics involves analyzing the costs
and benefits of healthcare interventions and investments.
©2024/2025
